Can this be done?

But... everyone really investing in real estate is doing this. Problem is risk and you get wasted if you can't take a hit as a small fish

Fair point. But don't owner check up on their property every once in a while to see if everything's ok? Plus, as far as I know, tenants put some money as collateral.
Do you have an example of what happens in some countries?

Fuck didn't know this. Does it apply in every country?

Yeah

>Good location
Inner cities, you will be fucked because of roaming nogs and spics
>"White neighborhoods" in cities
You are fucked, too many regulations, nobody can afford it really
>Countryside
Will not be able to keep tenants for 20 years, too far away from economic hot spots, will not make monthly payments

Have fun playing jew and getting jewed by the bank and regulations, local, regional and national

Also depending on the region there are simply more profitable investments

You can do this with a multi family property (2-4 unit, duplex, triplex, fourplex) and still use an FHA loan. This decreases your cash outlay (3.5% down via the FHA loan instead of 20%) and the multiple rental income streams increases the likelihood that you’ll totally cover the cost of the mortgage. It’s a well known strategy called House Hacking, the website/podcast Bigger Pockets has a ton of info on it

In Finland, the collateral doesn't usually last for 6 months, which is the maximum requires time tenant must be given (depending how long the tenancy has lasted). Sure, you can set the collateral exactly as high you want but that's going to make it seriously harder to get anyone in.

Also, if they end up wrecking the property, you better have good insurances and even those don't always cover everything. Typical collateral is only for missed rent payments and stuff, and while you can take it to cover renovation expenses for "unusual" shit that has happened, the amount of money that fixing those is most likely considerably more than any collateral you can hope to get from anyone.

And good luck trying to get the monies through civil courts here. You'll likely win the case but that doesn't make the tenant able to pay anything.

What the shit? What do you think a MORTGAGE is? You just described something boomers did en masse. It's less viable in 2019 because houses are so expensive but it's still workable.

Thanks. I'll look into it.

Damn. Good tenants are everything then. I would not want to deal with any of that shit, especially courts. Thanks for your input.

Good tenants are everything. Start reading books now.

You can always house hack even more granularly, rent out rooms in your house. It’s easier if you live in a decent area with good jobs.

You need to run it like a business, set rules for yourself and your tenants, follow them and make the tenants follow them. Rent isn’t here by the 5th? Late fee. It’s not here by the 10th? File eviction “oh but my uncle blah blah blah”, none of that matters (unless it’s a one off with a long term tenant), obviously these numbers will vary state to state (I’m a US guy, I can’t comment much on anything from other countries)

But the FHA loan-> small multi family aka house hacking is a VERY common path

unless you are on the border of rural georgia and the city of atlanta, good luck .....atlanta pheonix dallas stuff like than. cities that make top ten fastest growing every year

You can't buy property with loaned money.

Nigga... what?

Have you heard of a mortgage

My friends did this, took out a mortgage at an other firm where they didnt have their own mortgage.

In the Netherlands(where I live) they only give you a mortgage of 66% of the house value I believe so you need to have some capital, that is if you tell them you are planning to rent out the place.

This happened in the 1920's but with stocks instead of houses.
Something bad happened after that

You need a book to tell you not to rent to black people?

Yeah, your tenants might be squatters who don't pay rent, your tenant might get their wife pregnant every year or 2 exactly on time so you can't throw them out. You might not be able to find a tenant Your tenants might hurt themselves in your home and claim it was your fault for not making sure the home was safe. Things in your home will break and you will have to fix them. If you break city regulations so you can fit more tenants a shitty tenant who you have to evict with the sheriffs help or a shitty tenant who knows you are breaking rules can get your home inspected so you can't sell it or rent it out until it's fixed. A flood, hurricane, or twister might destroy your home partially or completely. There might be a home fire caused by faulty wiring or a bad tenant. You might be forced to live in the home with your tenants because of city regulations. Etc.

>bubble pops.
>Property devaluates in 50%
>Loan still the same.
Well

>But don't owner check up on their property every once in a while to see if everything's ok?

Yeah m8, that's fine unless your tenant has already fucked the place over and dissapeared

this

>wait for bubble to pop
>properties are now worth 50% less
>get a loan and buy a property

$$$?

Why would you ask for twice the money for the value of the property?
In that case if you want to make the play, directly wait for the bubble to pop and then get a loan for the already devaluated value of the property.
The main problem this carries is the fact that an economic crisis would provide certain inestability to the whole job market, and you may get laid off from your job and now having no margin whatsoever to play between the rent and your salary.
If the person renting your property does not pay a month, you'll still have to pay the loan and if the contract with your tenant finishes and you can't get a tenant while the property is still unoccupied, you'll still have to pay the loan.
So beforehand doing this, at least have a reserve for these cases.
It's a bold play, of course at the long rid with would pay, because you'll capitalize.

This

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Being a land lord of residence unit isn't passive at all you have lot of shit to deal with

this is one of the most retarded threads I've ever seen on biz. did you all not realize that this is what all us boomer have been doing already? the guy you're renting from, you think he's renting to you for less than his monthly mortgage payments?!
holy shit, the IQ of this board.
you are more likely than not paying at least $100-200 in rent than your landlords monthly mortgage. that extra money he puts in an account to cover maintenance costs on the property.

this board is 18+ faggot. don't talk about things you have no idea about. you're tax situation may be different, but god damn there is no law preventing you from renting out a house you just took out a loan on.

Imagine being this far behind. That being said, I know a few guys who are doing this with a bunch of houses right now. They have some bullshit reasons why they won’t get fucked, but another 2008 would ruin these guys.

Basically this.

Been comparing monthly price of buying condo/apartments in Chicago with the price to rent in the same building. Some buildings even tell you that you can rent immediately or its a great investor opportunity, otherwise sometimes you have to wait a year. Its not a coincidence that rent anywhere on the northside is about the cost of a mortgage+insurance/taxes+hoa fees.

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>hurr durrrr you must be 18 to post here

How about you suck my cock faggot, I was thinking of something else

yeah, you definitely don't want to be overleveraged in the event of another housing crash. on paper though, it makes so much sense. buy a cheap property (preferably in a coming up area) and put in the bare minimum amount of work to rent it out, collect for a year, then buy another one. do this for 10-15 years, then start selling them off again one each year. retire an easy millionaire.

zoomers will fuck up property just as much as black people
they don't give a fuck, they'll punch holes in walls and do all kinds of stupid shit for the memes
if you can help it only rent to people in their 50s and 60s, they don't have the energy to do shit and they'll be more mature

avoid people with kids
avoid zoomers
preferably no pets

If you can avoid these things you will be safe for the most part.

>luxury
>no enema attachments.
why even live?

There are lot more unstable people living than you think. You can sign any kind of contract but some of them just don't give a fuck. I'd prefer to buy business units if I have enough cash as businesses are less likely to fuck your property.

ur on 2 something opie

Banks need more money down (~40% depending) for a rental than for a personal home loan. This makes sense anyways because it takes care of some of the concerns voiced here. For one it makes sure you make profit every month. Still probably not a lot of profit, but enough to cover times of vacancy, maintenance and repairs, taxes etc. If you are in profit after that you should probably be saving it for your next property purchase. Your main gains will be in equity, which has the benefit of not being taxed as income. Waiting for a nice dip in the housing market to buy in is definitely the smart move. I think it's the very large down payment required that prevents most people from starting down this path. Otherwise it's a damn good racket.

Because it's not passive income. You'll be constantly answering phone calls from needy tenants or paying all your profits to someone to do it for you. You'll deal with constant mainenance or get absolutely fleeced by contractors to do it for it. You'll be dealing with criminal niggers who pawn your appliances to buy crack. You'll be exposed to housing market downturns and can potentially lose your shirt.

That's how you do it, or at least at the start. Very few people have the money to just outright buy their first property. The challenge is having enough capital to renovate or maintain property and there is no guarantee that there will be a tenant for the entire length of loan. Bad tenants who are destructive or don't pay or both can also be an unforeseen cost that you will have to dig out of your own pocket, at least until the issues are resolved.

You need to have eyes on the property at all times and be able to fix everything yourself short notice or else you'll lose your entire margin paying contractor's to fix water heaters and plumbing and other random shit.

I do this but it only works because I own my house and bought the one beside me, and it's more like the rent covers 90% of the mortage, I cover 10% and the price goes up up enough that my overall equity gains 12% or so relative to the book value of the investment. It's stable but it's not a cash flow machine.

>It’s a well known strategy called House Hacking, the website/podcast Bigger Pockets has a ton of info on it
I'm a bit skeptical that lucrative advice would be shared with others when it would lead to more competition and less profit. I'm doubly skeptical being on a Jow Forums board with someone shilling a specific website for this information.

what if you rent a place then rent it to some other guy for more money?
or take a loan and pay it back by getting a bigger loan from another bank then pay that back with another loan from another bank

literally free money

someone should tell REITs.

so this is the power of Jow Forums

>luxury
>3 times as wide as it needs to be

Subletting is generally a breech of contract.

Far more sensible is to invest in 'commercial' real estate products as part of your general investment portfolio, user, no need to go into debt, no need to deal with tenants, managed by pros, spreads risk around areas and so on

After taking an executive tier shit, your body becomes so limber that this is acceptable placement for a roll holder.

this is how the housing market crashed you fucking moron. Are you 18?

23 actually. Just getting interested in business

if you got a mortgage, you had to mark on the contract whether the home is intended to be primary residence or second non-primary residence/rental. it is not a "law" per se, but its in all mortgage contracts. all of them. if you break that, i dunno what happens but it probably costs you some serious cash.

the clause is in place to determine minimum down payment. if its not your priamry residence, you will need at least 20% down.

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in addition, i think the clause typically lasts one to three years from mortgage approval.

You can but it’s extremely hard to get approved for a loan nowadays. You can thank the boomers for that.

Yep. You can also claim that you worked on your property for tax reimbursements.

Thing is you HAVE to rent out to whites. Gooks are the worst and demand a shit load of things, I assume beaners will ruin your property with 50 kids and nigs I'm not even sure if srs.

Have you ever rented out a property before? Could it perhaps be way more expensive, labor intensive, and complicated than you think?

I will warn you that being a landlord is not nearly as easy as your college's socialist club leader makes it sound.

Fed sends undercover black/minority tenants just to sue landlords that won't rent to shitskins

only applies to residential buildings more than four tenant spaces, meaning quadplexes and below are exempt. controlling multiple quadplexes doesnt change the exemption either, so only be careful if youre running an apartment complex.